Why Use An Adverse Credit Mortgage Broker?
Researching, comparing and choosing a mortgage is difficult at
the best of times. When you have credit history problems,
obtaining a mortgage can seem almost impossible. That's why it
helps to use an adverse credit mortgage broker. With
qualifications and experience in the market, a good broker is
ideally placed to help you find a mortgage that suits your
circumstances.
Can I trust an adverse credit mortgage broker?
It's easy to understand why people may be worried about getting
advice from an adverse credit mortgage broker, particularly if
they have had bad experiences with financial institutions in the
past. Brokers often get paid in commission - so they will
receive money from the lender whose product they have sold, and
the commission will vary from product to product. This has, in
the past, led people to believe that brokers would only
recommend the products that earned the highest commissions.
Fortunately, this is not now the case. An adverse credit
mortgage broker must be regulated by the Financial Services
Authority in order to remain in business. Regulation involves a
detailed process which means that the FSA must approve the
broker's policies and working methods. The broker also has to
commit to working to a set of guidelines that are designed to
protect the consumer at all times. Part of this regulation means
that the broker must provide you with a written document
detailing their advice, together with illustrations of how the
products will help you. This will allow you to come back to the
broker with written documentation should anything go wrong. In
addition, some adverse credit mortgage brokers are opting to be
paid in a combination of commissions and fees. This may mean
that, like a solicitor or an accountant, they may charge a fee
for their advice. Bear in mind that the broker may be able to
get a better deal for you than you could get on your own, and
will offer practical advice, so it could still be worth your
while to pay the fee.
What can an adverse credit mortgage broker do for me?
Whilst you may begin your search for a mortgage by looking in
the paper, or talking to one or two high street banks and
building societies, you won't be able to see the full range of
mortgages available to you. The number of people with bad credit
history who require a mortgage has grown to the extent that new
products are being constantly developed for this market. This
makes it difficult for the person on the street to have access
to all the possibilities. An adverse credit mortgage broker not
only has experience in placing these types of mortgages, but
will also usually have access to most of the products on the
market. In addition, they will have contacts with the lenders,
which means that should you encounter any problems with your
application, your adverse credit mortgage broker should be able
to help you resolve them and even negotiate on your behalf when
it comes to the restrictions that may be imposed on you.
How can I choose an adverse credit mortgage broker?
As with all financial advice, the way the broker deals with each
client is extremely important. A reputable adverse credit
mortgage broker will want to find out exactly what position you
are in, whether you have applied for an adverse credit mortgage
previously, and look at how you are managing your current debt
problems. They will also want to know about the sorts of
property you are looking at and the amount you need to borrow.
Brokers who don't show any interest in your circumstances are
unlikely to be able to give you useful or accurate advice.
In addition, you should always make sure that the adverse credit
mortgage broker you are approaching is regulated by the FSA.
This means that they are working to national guidelines, and
that you will have a point of contact should anything go wrong.
A broker who is not approved by the FSA should not be giving
advice to consumers at all.